In 3 sentences:
David Foster Wallace gives the 2005 Kenyon Commencement Address where he discusses the importance of being conscious of how we think and pay attention. He argues that our natural default is to see ourselves as the center of the universe and that a liberal arts education should teach us to challenge this and consider other perspectives. As an example, he discusses how we can choose to think differently about everyday frustrations like traffic and long checkout lines by considering other people may be in more urgent situations.
Transcription of the 2005 Kenyon Commencement Address - May .docx
1. Transcription of the 2005 Kenyon Commencement Address -
May 21, 2005
Written and Delivered by David Foster Wallace
(If anybody feels like perspiring [cough], I'd advise you to go
ahead,
because I'm sure going to. In fact I'm gonna [mumbles while
pulling up
his gown and taking out a handkerchief from his pocket].)
Greetings
["parents"?] and congratulations to Kenyon's graduating class of
2005.
There are these two young fish swimming along and they
happen to meet
an older fish swimming the other way, who nods at them and
says
"Morning, boys. How's the water?" And the two young fish
swim on for a
bit, and then eventually one of them looks over at the other and
goes
"What the hell is water?"
This is a standard requirement of US commencement speeches,
the
deployment of didactic little parable-ish stories. The story
["thing"] turns
out to be one of the better, less bullshitty conventions of the
genre, but if
you're worried that I plan to present myself here as the wise,
2. older fish
explaining what water is to you younger fish, please don't be. I
am not the
wise old fish. The point of the fish story is merely that the most
obvious,
important realities are often the ones that are hardest to see and
talk
about. Stated as an English sentence, of course, this is just a
banal
platitude, but the fact is that in the day to day trenches of adult
existence,
banal platitudes can have a life or death importance, or so I
wish to
suggest to you on this dry and lovely morning.
Of course the main requirement of speeches like this is that I'm
supposed
to talk about your liberal arts education's meaning, to try to
explain why
the degree you are about to receive has actual human value
instead of just
a material payoff. So let's talk about the single most pervasive
cliché in the
commencement speech genre, which is that a liberal arts
education is not
so much about filling you up with knowledge as it is about
quote teaching
you how to think. If you're like me as a student, you've never
liked hearing
this, and you tend to feel a bit insulted by the claim that you
needed
anybody to teach you how to think, since the fact that you even
got
admitted to a college this good seems like proof that you
already know
how to think. But I'm going to posit to you that the liberal arts
3. cliché
turns out not to be insulting at all, because the really significant
education
in thinking that we're supposed to get in a place like this isn't
really about
the capacity to think, but rather about the choice of what to
think about.
If your total freedom of choice regarding what to think about
seems too
obvious to waste time discussing, I'd ask you to think about fish
and
water, and to bracket for just a few minutes your skepticism
about the
value of the totally obvious.
Here's another didactic little story. There are these two guys
sitting
together in a bar in the remote Alaskan wilderness. One of the
guys is
religious, the other is an atheist, and the two are arguing about
the
existence of God with that special intensity that comes after
about the
fourth beer. And the atheist says: "Look, it's not like I don't
have actual
reasons for not believing in God. It's not like I haven't ever
experimented
with the whole God and prayer thing. Just last month I got
caught away
from the camp in that terrible blizzard, and I was totally lost
and I
couldn't see a thing, and it was fifty below, and so I tried it: I
fell to my
4. knees in the snow and cried out 'Oh, God, if there is a God, I'm
lost in
this blizzard, and I'm gonna die if you don't help me.'" And
now, in the
bar, the religious guy looks at the atheist all puzzled. "Well
then you must
believe now," he says, "After all, here you are, alive." The
atheist just rolls
his eyes. "No, man, all that was was a couple Eskimos happened
to come
wandering by and showed me the way back to camp."
It's easy to run this story through kind of a standard liberal arts
analysis:
the exact same experience can mean two totally different things
to two
different people, given those people's two different belief
templates and
two different ways of constructing meaning from experience.
Because we
prize tolerance and diversity of belief, nowhere in our liberal
arts analysis
do we want to claim that one guy's interpretation is true and the
other
guy's is false or bad. Which is fine, except we also never end up
talking
about just where these individual templates and beliefs come
from.
Meaning, where they come from INSIDE the two guys. As if a
person's
most basic orientation toward the world, and the meaning of his
experience were somehow just hard-wired, like height or shoe-
size; or
automatically absorbed from the culture, like language. As if
how we
construct meaning were not actually a matter of personal,
5. intentional
choice. Plus, there's the whole matter of arrogance. The
nonreligious guy
is so totally certain in his dismissal of the possibility that the
passing
Eskimos had anything to do with his prayer for help. True, there
are
plenty of religious people who seem arrogant and certain of
their own
interpretations, too. They're probably even more repulsive than
atheists, at
least to most of us. But religious dogmatists' problem is exactly
the same
as the story's unbeliever: blind certainty, a close-mindedness
that amounts
to an imprisonment so total that the prisoner doesn't even know
he's
locked up.
The point here is that I think this is one part of what teaching
me how to
think is really supposed to mean. To be just a little less
arrogant. To have
just a little critical awareness about myself and my certainties.
Because a
huge percentage of the stuff that I tend to be automatically
certain of is, it
turns out, totally wrong and deluded. I have learned this the
hard way, as I
predict you graduates will, too.
Here is just one example of the total wrongness of something I
tend to be
6. automatically sure of: everything in my own immediate
experience
supports my deep belief that I am the absolute center of the
universe; the
realist, most vivid and important person in existence. We rarely
think
about this sort of natural, basic self-centeredness because it's so
socially
repulsive. But it's pretty much the same for all of us. It is our
default
setting, hard-wired into our boards at birth. Think about it:
there is no
experience you have had that you are not the absolute center of.
The
world as you experience it is there in front of YOU or behind
YOU, to
the left or right of YOU, on YOUR TV or YOUR monitor. And
so on.
Other people's thoughts and feelings have to be communicated
to you
somehow, but your own are so immediate, urgent, real.
Please don't worry that I'm getting ready to lecture you about
compassion
or other-directedness or all the so-called virtues. This is not a
matter of
virtue. It's a matter of my choosing to do the work of somehow
altering
or getting free of my natural, hard-wired default setting which
is to be
deeply and literally self-centered and to see and interpret
everything
through this lens of self. People who can adjust their natural
default
setting this way are often described as being "well-adjusted",
which I
7. suggest to you is not an accidental term.
Given the triumphant academic setting here, an obvious
question is how
much of this work of adjusting our default setting involves
actual
knowledge or intellect. This question gets very tricky. Probably
the most
dangerous thing about an academic education -- least in my own
case -- is
that it enables my tendency to over-intellectualize stuff, to get
lost in
abstract argument inside my head, instead of simply paying
attention to
what is going on right in front of me, paying attention to what is
going on
inside me.
As I'm sure you guys know by now, it is extremely difficult to
stay alert
and attentive, instead of getting hypnotized by the constant
monologue
inside your own head (may be happening right now). Twenty
years after
my own graduation, I have come gradually to understand that
the liberal
arts cliché about teaching you how to think is actually
shorthand for a
much deeper, more serious idea: learning how to think really
means
learning how to exercise some control over how and what you
think. It
means being conscious and aware enough to choose what you
8. pay
attention to and to choose how you construct meaning from
experience.
Because if you cannot exercise this kind of choice in adult life,
you will be
totally hosed. Think of the old cliché about quote the mind
being an
excellent servant but a terrible master.
This, like many clichés, so lame and unexciting on the surface,
actually
expresses a great and terrible truth. It is not the least bit
coincidental that
adults who commit suicide with firearms almost always shoot
themselves
in: the head. They shoot the terrible master. And the truth is
that most of
these suicides are actually dead long before they pull the
trigger.
And I submit that this is what the real, no bullshit value of your
liberal
arts education is supposed to be about: how to keep from going
through
your comfortable, prosperous, respectable adult life dead,
unconscious, a
slave to your head and to your natural default setting of being
uniquely,
completely, imperially alone day in and day out. That may
sound like
hyperbole, or abstract nonsense. Let's get concrete. The plain
fact is that
you graduating seniors do not yet have any clue what "day in
day out"
really means. There happen to be whole, large parts of adult
American life
9. that nobody talks about in commencement speeches. One such
part
involves boredom, routine, and petty frustration. The parents
and older
folks here will know all too well what I'm talking about.
By way of example, let's say it's an average adult day, and you
get up in the
morning, go to your challenging, white-collar, college-graduate
job, and
you work hard for eight or ten hours, and at the end of the day
you're
tired and somewhat stressed and all you want is to go home and
have a
good supper and maybe unwind for an hour, and then hit the
sack early
because, of course, you have to get up the next day and do it all
again. But
then you remember there's no food at home. You haven't had
time to
shop this week because of your challenging job, and so now
after work
you have to get in your car and drive to the supermarket. It's the
end of
the work day and the traffic is apt to be: very bad. So getting to
the store
takes way longer than it should, and when you finally get there,
the
supermarket is very crowded, because of course it's the time of
day when
all the other people with jobs also try to squeeze in some
grocery
shopping. And the store is hideously lit and infused with soul-
10. killing
muzak or corporate pop and it's pretty much the last place you
want to be
but you can't just get in and quickly out; you have to wander all
over the
huge, over-lit store's confusing aisles to find the stuff you want
and you
have to maneuver your junky cart through all these other tired,
hurried
people with carts (et cetera, et cetera, cutting stuff out because
this is a
long ceremony) and eventually you get all your supper supplies,
except
now it turns out there aren't enough check-out lanes open even
though
it's the end-of-the-day rush. So the checkout line is incredibly
long, which
is stupid and infuriating. But you can't take your frustration out
on the
frantic lady working the register, who is overworked at a job
whose daily
tedium and meaninglessness surpasses the imagination of any of
us here at
a prestigious college.
But anyway, you finally get to the checkout line's front, and you
pay for
your food, and you get told to "Have a nice day" in a voice that
is the
absolute voice of death. Then you have to take your creepy,
flimsy, plastic
bags of groceries in your cart with the one crazy wheel that
pulls
maddeningly to the left, all the way out through the crowded,
bumpy,
littery parking lot, and then you have to drive all the way home
11. through
slow, heavy, SUV-intensive, rush-hour traffic, et cetera et
cetera.
Everyone here has done this, of course. But it hasn't yet been
part of you
graduates' actual life routine, day after week after month after
year.
But it will be. And many more dreary, annoying, seemingly
meaningless
routines besides. But that is not the point. The point is that
petty,
frustrating crap like this is exactly where the work of choosing
is gonna
come in. Because the traffic jams and crowded aisles and long
checkout
lines give me time to think, and if I don't make a conscious
decision about
how to think and what to pay attention to, I'm gonna be pissed
and
miserable every time I have to shop. Because my natural default
setting is
the certainty that situations like this are really all about me.
About MY
hungriness and MY fatigue and MY desire to just get home, and
it's going
to seem for all the world like everybody else is just in my way.
And who
are all these people in my way? And look at how repulsive most
of them
are, and how stupid and cow-like and dead-eyed and nonhuman
they
12. seem in the checkout line, or at how annoying and rude it is that
people
are talking loudly on cell phones in the middle of the line. And
look at
how deeply and personally unfair this is.
Or, of course, if I'm in a more socially conscious liberal arts
form of my
default setting, I can spend time in the end-of-the-day traffic
being
disgusted about all the huge, stupid, lane-blocking SUV's and
Hummers
and V-12 pickup trucks, burning their wasteful, selfish, forty-
gallon tanks
of gas, and I can dwell on the fact that the patriotic or religious
bumper-
stickers always seem to be on the biggest, most disgustingly
selfish
vehicles, driven by the ugliest [responding here to loud
applause] (this is
an example of how NOT to think, though) most disgustingly
selfish
vehicles, driven by the ugliest, most inconsiderate and
aggressive drivers.
And I can think about how our children's children will despise
us for
wasting all the future's fuel, and probably screwing up the
climate, and
how spoiled and stupid and selfish and disgusting we all are,
and how
modern consumer society just sucks, and so forth and so on.
You get the idea.
If I choose to think this way in a store and on the freeway, fine.
Lots of us
13. do. Except thinking this way tends to be so easy and automatic
that it
doesn't have to be a choice. It is my natural default setting. It's
the
automatic way that I experience the boring, frustrating, crowded
parts of
adult life when I'm operating on the automatic, unconscious
belief that I
am the center of the world, and that my immediate needs and
feelings are
what should determine the world's priorities.
The thing is that, of course, there are totally different ways to
think about
these kinds of situations. In this traffic, all these vehicles
stopped and
idling in my way, it's not impossible that some of these people
in SUV's
have been in horrible auto accidents in the past, and now find
driving so
terrifying that their therapist has all but ordered them to get a
huge, heavy
SUV so they can feel safe enough to drive. Or that the Hummer
that just
cut me off is maybe being driven by a father whose little child
is hurt or
sick in the seat next to him, and he's trying to get this kid to the
hospital,
and he's in a bigger, more legitimate hurry than I am: it is
actually I who
am in HIS way.
Or I can choose to force myself to consider the likelihood that
14. everyone
else in the supermarket's checkout line is just as bored and
frustrated as I
am, and that some of these people probably have harder, more
tedious
and painful lives than I do.
Again, please don't think that I'm giving you moral advice, or
that I'm
saying you are supposed to think this way, or that anyone
expects you to
just automatically do it. Because it's hard. It takes will and
effort, and if
you are like me, some days you won't be able to do it, or you
just flat out
won't want to.
But most days, if you're aware enough to give yourself a choice,
you can
choose to look differently at this fat, dead-eyed, over-made-up
lady who
just screamed at her kid in the checkout line. Maybe she's not
usually like
this. Maybe she's been up three straight nights holding the hand
of a
husband who is dying of bone cancer. Or maybe this very lady
is the low-
wage clerk at the motor vehicle department, who just yesterday
helped
your spouse resolve a horrific, infuriating, red-tape problem
through some
small act of bureaucratic kindness. Of course, none of this is
likely, but it's
also not impossible. It just depends what you what to consider.
If you're
automatically sure that you know what reality is, and you are
15. operating on
your default setting, then you, like me, probably won't consider
possibilities that aren't annoying and miserable. But if you
really learn how
to pay attention, then you will know there are other options. It
will
actually be within your power to experience a crowded, hot,
slow,
consumer-hell type situation as not only meaningful, but sacred,
on fire
with the same force that made the stars: love, fellowship, the
mystical
oneness of all things deep down.
Not that that mystical stuff is necessarily true. The only thing
that's
capital-T True is that you get to decide how you're gonna try to
see it.
This, I submit, is the freedom of a real education, of learning
how to be
well-adjusted. You get to consciously decide what has meaning
and what
doesn't. You get to decide what to worship.
Because here's something else that's weird but true: in the day-
to day
trenches of adult life, there is actually no such thing as atheism.
There is
no such thing as not worshipping. Everybody worships. The
only choice
we get is what to worship. And the compelling reason for maybe
choosing
some sort of god or spiritual-type thing to worship -- be it JC or
16. Allah, be
it YHWH or the Wiccan Mother Goddess, or the Four Noble
Truths, or
some inviolable set of ethical principles -- is that pretty much
anything
else you worship will eat you alive. If you worship money and
things, if
they are where you tap real meaning in life, then you will never
have
enough, never feel you have enough. It's the truth. Worship your
body
and beauty and sexual allure and you will always feel ugly. And
when time
and age start showing, you will die a million deaths before they
finally
grieve you. On one level, we all know this stuff already. It's
been codified
as myths, proverbs, clichés, epigrams, parables; the skeleton of
every great
story. The whole trick is keeping the truth up front in daily
consciousness.
Worship power, you will end up feeling weak and afraid, and
you will
need ever more power over others to numb you to your own
fear.
Worship your intellect, being seen as smart, you will end up
feeling stupid,
a fraud, always on the verge of being found out. But the
insidious thing
about these forms of worship is not that they're evil or sinful,
it's that
they're unconscious. They are default settings.
They're the kind of worship you just gradually slip into, day
after day,
17. getting more and more selective about what you see and how
you measure
value without ever being fully aware that that's what you're
doing.
And the so-called real world will not discourage you from
operating on
your default settings, because the so-called real world of men
and money
and power hums merrily along in a pool of fear and anger and
frustration
and craving and worship of self. Our own present culture has
harnessed
these forces in ways that have yielded extraordinary wealth and
comfort
and personal freedom. The freedom all to be lords of our tiny
skull-sized
kingdoms, alone at the center of all creation. This kind of
freedom has
much to recommend it. But of course there are all different
kinds of
freedom, and the kind that is most precious you will not hear
much talk
about much in the great outside world of wanting and achieving
and
[unintelligible -- sounds like "displayal"]. The really important
kind of
freedom involves attention and awareness and discipline, and
being able
truly to care about other people and to sacrifice for them over
and over in
myriad petty, unsexy ways every day.
18. That is real freedom. That is being educated, and understanding
how to
think. The alternative is unconsciousness, the default setting,
the rat race,
the constant gnawing sense of having had, and lost, some
infinite thing.
I know that this stuff probably doesn't sound fun and breezy or
grandly
inspirational the way a commencement speech is supposed to
sound.
What it is, as far as I can see, is the capital-T Truth, with a
whole lot of
rhetorical niceties stripped away. You are, of course, free to
think of it
whatever you wish. But please don't just dismiss it as just some
finger-
wagging Dr. Laura sermon. None of this stuff is really about
morality or
religion or dogma or big fancy questions of life after death.
The capital-T Truth is about life BEFORE death.
It is about the real value of a real education, which has almost
nothing to
do with knowledge, and everything to do with simple
awareness;
awareness of what is so real and essential, so hidden in plain
sight all
around us, all the time, that we have to keep reminding
ourselves over and
over:
"This is water."
"This is water."
19. It is unimaginably hard to do this, to stay conscious and alive in
the adult
world day in and day out. Which means yet another grand cliché
turns out
to be true: your education really IS the job of a lifetime. And it
commences: now.
I wish you way more than luck.
RUNNING HEAD: GROWTH ANALYSIS
10
GROWTH ANALYSIS ASSIGNMENT
Here are examples of previous assignment submissions. They
are provided only to give students an idea of one way to
approach the assignments. The papers are not represented as
the best or recommended ways to approach the assignment.
The required or appropriate Excel models are not attached; they
are expected to accompany the completed assignments.
Growth Analysis – Organic & Merger/ Acquisition –
The Coca Cola Company
20. I. Introduction
Whether a company is just starting out or a company has
been in business for decades, most desire to grow their business
and expand business operations. There are two ways to reach
these growth objectives: organic growth through slow expansion
over a longer period of time or a merger or acquisition with a
different company to expand business operations as soon as the
acquisition is completed (Ferris & Petitt, 2013). Organic growth
comes from within a company and can take the form of
expansion in emerging markets, new product development or
building a new production plant (Baker & Martin, 2011).
Organic growth requires an initial investment, which can be
financed through new debt issuance or using retained earnings
and will take multiple years to show its (hopefully) positive
effect (Baker & Martin, 2011).
Growth through a merger and acquisition (M&A) can
either be through merger, which means an entire company is
integrated within the existing company or as a completely new
business entity; or through acquisition, which means the
acquirer will purchase a stake in the target (Clayman et al.,
2012). This growth through M&A will show immediate results
as the company merges all assets and liabilities of the target in
its business or as the acquirer adds the equity investment to its
financial statements.
The Coca Cola Company has faced declining sales in its
core business of carbonated soft drinks and therefore needs to
consider new alternatives for growth opportunities. Two
possible growth strategies will be analyzed in this paper:
organic growth and growth through acquisition.
21. The Coca Cola Company has successfully grown organically by
expanding in emerging markets and the organic growth strategy
analyzed in this paper will be a further expansion into the
African market by an additional $5 billion investment in the
area over the next five years (Vault, 2014). The growth through
M&A for The Coca Cola Company analyzed in the following is
an expansion into the Smoothie market by acquiring a 10%
stake in Jamba, Inc. to further diversify KO’s product portfolio
(Munnariz, 2014). After analyzing both growth strategies and
comparing them with each other based on the eVal results a
recommendation on a growth strategy to pursue will be
presented to The Coca Cola Company.
II. Explanation and Analysis of Assumptions and Results of
eVal Projections for Organic Growth Strategy
As discussed in the introduction the recommended strategy
for organic growth is further expansion in emerging markets to
take advantage of the growing middle class in these markets,
who has the money to spend on the products KO offers. KO
plans to expand its operations in Africa, by investing $5 billion
in the bottling partners there. KO wants to “build new
manufacturing capacity, develop sustainability initiatives and
create jobs” (Vault, 2014). The expansion will take place over
the next five years with investments of $1 billion per year. The
cash for this investment will be provided through new debt
issuance. KO has a very favorable cost of debt of long-term
debt of 2.2% (Coca Cola, 2015). KO’s cost of equity is
significantly higher at 6% according to the CAPM. The increase
in investments in expanding markets is presented through an
increase in PP&E of $1 billion per year from 2015 through 2019
– the company wants to expand its manufacturing capacity. The
increase in PP&E is possible through an increase in long-term
debt by $1 billion a year from 2015 to 2019. The increase in
PP&E will gradually increase the Ending Net PP&E/Sales Ratio,
assuming an expansion of $1 billion a year the Ratio will
increase from 31.8% in 2015, to 34%, 36%, 40%, 41.2%, 44.3%
in 2015, 2016, 2017, 2018, 2019, respectively, keeping sales
22. constant for these initial years of investment. Considering the
financing of this investment through the issuance of new long-
term debt of $1 billion a year from 2015 through 2019, the
Long-Term Debt/ Total Assets Ratio will also change.
Assuming issuance of $1 billion of new long-term debt per year
over the period of the organic growth through expansion in
PP&E the Ratio will be 21.9%, 23.9%, 24.6%, 25.2% and 25.6%
in 2015, 2016, 2017, 2018 and 2019, respectively. After
successfully having expanded its manufacturing capacity in
Africa by 2020 and completing the expansion in PP&E the
company expects sales to grow by 3.4 percent points in 2020
compared to the growth rate of 0.4% in 2019 before completion
of the expansion and 0.25% every following year. The company
will have the highest growth rate of 4.8% in 2024 before
reaching its terminal growth rate of 3% in the following years.
The increased sales growth rate will lead to a substantial
increase in sales in the following years as opposed to prior to
the expansion. The increase is slow and over a longer period of
time, but all other factors kept constant KO can expect its sales
to reach $58 billion by 2026 compared to $45 billion in 2015.
The Cash Flow from Operations through this expansion shows
the initial cost for the expansion by slightly dropping to $8.87
billion in 2015 compared to $8.99 billion in 2014, but will
increase to $11.91 billion by 2026.
This organic growth strategy presents a pretty interesting
growth opportunity, but considering the slow expansion, with
first improved sales growth in 2020 after the expansion is
complete and risks associated with exchange currency rates and
political instability in some areas of Africa another growth
strategy should be considered before making a final
recommendation.
III. Explanation and Analysis of Assumptions and Results of
eVal Projections for Merger or Acquisition Growth Strategy
The Coca Cola Company completed its first merger in
1960 when the company purchased The Minute Maid Company
to expand beyond its carbonated soft drink market (The Coca
23. Cola Company, 2012). This was KO’s first step towards
becoming the leader in the nonalcoholic beverage market (The
Coca Cola Company, 2012). However, in recent years KO has
faced declining sales primarily due to generating almost 70% of
its revenues through the sale of carbonated drinks while the
consumer market desires healthier products. Considering the
beneficial effects the merger with The Minute Maid Company
had for KO, the company has expanded its product portfolio in
other beverage markets in the past few years. KO acquired a
16.7% stake in Monster Beverage Corporation in 2015 and a
16% stake in Keurig Green Mountain in 2014. Both of these
acquisitions have provided KO with a more diversified portfolio
and opportunity for growth. Monster and Keurig have seen
improved stock valuations since the acquisitions have been
completed.
Merger & Acquisitions (M&A) are selected by a company
to create value (Ferris & Petitt, 2013). Companies have three
main motivating factors for a M&A: operating synergies,
financial synergies and managerial synergies (Ferris & Petitt,
2013). This means a M&A is only recommended if the
combination of the two businesses or the partnership entered
into is more beneficial than each would be separately.
The acquisition considered in this analysis for The Coca Cola
Company is purchasing a 10% stake in Jamba, Inc., a smoothie
chain. By combining the operations of the acquirer (KO) and the
target (JMBA) the following operating synergies are expected:
· Revenue enhancement for KO by diversifying its product
portfolio and accessing new markets.
· For JMBA the ability to leverage KO’s distribution network
and being able to sell its products to KO’s customers will
increase its sales volume. Which, in turn, will provide KO a
larger gain through its 16% equity investment in JMBA.
Jamba’s closing price on March 4, 2016 was $13.39 per share
with 15.04 million shares outstanding (Yahoo! Finance, 2016).
A 10% stake in JMBA equals 1.5 million shares or $20.14
million. Considering an average premium on acquisitions of 20-
24. 30 percent of the market price (Ferris & Petitt, 2013), this
analysis will assume a 25% premium on the share price, thus
KO would acquire a 10% in JMBA for $26.18 million. This
acquisition would take place in 2015 and would change the
following variables in the eVal Forecasting Assumptions:
· KO recorded its income from its acquisition in Keurig as
Other Investments, based on this strategy the acquisition of a
10% stake in Jamba, Inc. will also be recorded as Other
Investments at $26.18 million in 2015.
· The investment in JMBA will be financed through a reduction
of retained earnings by $26.18 million in 2015.
· The Income earned through the equity stake in JMBA will be
recorded under Other Income, thus the Other Income/ Sales
ratio will change. JMBA has been able to increase its Net
Income by 42.73% from 2013 to 2014 and is expected to further
increase its income through the acquisition and the agreement
with KO to be able to use KO’s distribution channels.
Considering KO would benefit as an equity partner from
JMBA’s increased income, KO would receive $363,200 in 2014,
considering a continued growth of income by 30% in the
following years, KO would receive $472,160 in 2015 and so
forth. This would change the Other Income/ Sales ratio from 0%
to 1%.
KO would receive Cash Flows from Operations of $12.56
billion by 2026. Sales would reach $51.7 billion by 2026 and
KO’s Net Income would slightly increase due to the added
Other Income from the 10% stake acquisition of JMBA to $7.5
billion in 2015 compared to $7 billion in 2014.
IV. Examination and Discussion of Comparison of Results of
the Growth Strategies
(In thousands)
2015
2016
2017
26. Organic
8,867,836
8,835,616
8,846,519
8,891,479
8,972,314
9,583,846
11,912,527
Acquisition
9,332,341
9,710,143
10,142,403
10,616,475
10,689,942
10,810,563
12,558,691
Comparing the Net Income (since the expansion would
primarily increase Sales, while the acquisition would lead to
Other Income), it underlines the above mentioned slow
movement from the organic growth. Net Income first drops in
2016 after making the first $1 billion investment in expanding
the PP&E in the Africa area, by 2020 Net Income reaches pre-
expansion levels and by 2026 an increase is 30% compared to
the beginning of the expansion. Looking at the Net Income after
the acquisition of 10% stake in Jamba, Inc, the Net Income
increases immediately at the point of purchase in 2015. Net
Income continues to increase until it reaches over $10 billion in
2026. The acquisition growth strategy provides KO with an
increase in Net Income of almost 35%.
Looking at the Cash Flow from Operations, so how much
the different growth strategies will provide KO in Cash Flows,
it seems to be a similar result as the Net Income already
indicated. From 2015 to 2026 the Cash Flows from Operations
increased by 34% through the organic growth strategy and by
34.5% through the acquisition growth strategy.
27. Considering both increases in Net Income and Cash Flow
from Operations the acquisition provides KO compared to the
expansion, it seems like this growth strategy offers KO more
increase in value. To make a final recommendation other factors
need to be considered as well. The expansion strategy would
require KO to issue additional long-term debt and exchange rate
fluctuations as well as political instability in certain areas in
Africa make the expansion organic growth strategy even less
attractive.
The growth strategy through acquisition of 10% stake in Jamba,
Inc. offers KO the ability to further increase its product
portfolio, to take advantage of a fast growing market, new
distribution channels and can use some of its retained earnings
to pay for this equity purchase.
V. Recommendation and Justification of Most Appropriate
Growth Strategy
Considering all of the factors discussed above, it is
recommended for KO to continue to grow through acquisition of
stake in other beverage companies. KO should acquire a 10%
stake in Jamba, Inc. and pay for the $26.18 million with a part
of the company’s retained earnings. The company will benefit
from increased Net Income of 35% over the next 10 years and
increased Cash Flow from Operations of 34.5% over the same
period. The expansion carries too many risks with it while also
costing KO more. Furthermore, while consumers in Africa
might have more funds available to purchase Coke products it is
not guaranteed how long the demand for carbonated soft drinks
will stay the same in the area. So far, KO has acquired equity
stake in Monster Beverages, ZICO Inc. and Keurig Green
Mountain and has been able to benefit from the partnership
these acquisitions have provided. KO has now a wider variety of
nonalcoholic beverages and the potential to benefit from the
growing markets these companies are positioned in.
Furthermore, KO can now add Jamba, Inc. in the smoothie
market to its portfolio and does not have to take on additional
debt to finance this acquisition. Growth through mergers and
28. acquisitions has been a very beneficial strategy for KO over the
past few years and is expected to continue to be.
References
Baker, H., & Martin, G. (2011). Capital Structure and Corporate
Financing Decisions. John Wiley & Sons.
Clayman et al. (2012). Corporate Finance: A Practical
Approach, Second Edition. John Wiley & Sons.
Coca Cola. (2016). SEC 10 K Filing. Retrieved from
http://services.corporate-
ir.net/SEC/Document.Service?id=P3VybD1hSFIwY0RvdkwyRn
dhUzUwWlc1cmQybDZZWEprTG1OdmJTOWtiM2R1Ykc5aFp
DNXdhSEEvWVdOMGFXOXVQVkJFUmlacGNHRm5aVDB4T
URjM01EZzVOQ1p6ZFdKemFXUTlOVGM9JnR5cGU9MiZmbj
1UaGVDb2NhQ29sYUNvbXBhbnlfMTBLXzIwMTYwMjI1LnB
kZg==
Ferris, K. & Petitt,B. (2013, August). Valuation for Mergers and
Acquisitions: An Overview. Retrieved from
http://www.ftpress.com/articles/article.aspx?p=2109325
Munnariz, R. (2014, August 20). What Company Will Coca-
Cola Drink Up Next? Retrieved from
http://www.dailyfinance.com/2014/08/20/coca-cola-potential-
acquisition-targets/
The Coca Cola Company. (2012, December 21). Minute Maid:
The Day Coca-Cola Became the Company It Is Today. Retrieved
from http://www.coca-colacompany.com/stories/minute-maid-
the-day-coca-cola-became-the-company-it-is-today/
Vault. (2014). THE COCA-COLA COMPANY. Retrieved March
06, 2016, from http://www.vault.com/company-profiles/food-
29. beverage/the-coca-cola-company/company-overview.aspx
Yahoo! Finance. (2016). JMBA Key Statistics. Retrieved from
http://finance.yahoo.com/q/ks?s=JMBA+Key+Statistics
Question:
Professor for this particular paper what do we adjust in the
financial projections? For either option of growth or is there a
new excel model for us to look at? If not what are tabs should
we be looking at in the eVal model and adjusting for the
projections of either a merger or organic growth?
Response:
Good questions, thanks for asking.
First and foremost, this assignment is structured to encourage
you think about how a CFO would approach the analysis of
growth opportunities for a business - most business want to
grow.
Organic growth means to cause the business to grow internally,
without having to merge or buy other firms. Generally this will
be a process that is slower and occurs over time.
Merger/Acquisition means that the firm will grow by joining
with another firm (merger) or by buying another firm(s).
To boil the answer down to the essentials, organic growth
means that the CFO will need to make assumptions about future
growth (rates) and financing (borrowing, new stock, retained
earnings). To do this analysis with eVal means changing the
appropriate "Forecasting Assumptions" to reflect those
decisions. With organic growth, the changes will likely take
place incrementally over time.
To examine merger or acquisition means that the firm will need
to buy or join with another firm, which means the effects of the
strategy will occur at a point in time. The assets will grow.
The purchase price will have to be paid by new borrowing, new
30. stock, or use of existing retained earnings and cash. It would
probably be best to make those assumptions occur in a single
year. Again, the assumptions showing how the business will
change will be made on the eVal "Forecasting Assumptions"
worksheet.
In each case, the "Forecasting Assumptions" worksheet in eVal
allows you as the analyst to make changes in Sales Growth and
related variables, and in how the business is financed (working
capital ratios, debt ratios, etc.).
I hope this helps.....
====================
Question:
I may have missed something. What data are we supposed to
put into the eVal model to determine the data that we are to
analyze?
Response:
You may want to look at the Q&A section in this week's
classroom (Ask the Professor). I received several similar
questions and in the response I tried to explain what should be
in the eVal analyses.
Basically, you need to alter the Forecasting Assumptions
(Income Statement and Balance Sheet) to reflect what the
company will look like after implementing an Organic Growth
strategy or becoming involved in a Merger or Acquisition.
Essentially, your job is to make the adjustments so that the
balance sheet and income statement reflect the outcomes of each
strategy.
The Organic Growth strategy probably means that changes
occur over time. The Merger/Acquisition strategy will probably
include more immediate changes in assets, liabilities, and other
operating variables.
31. I will post this answer, too, so others can see the information.
Hope this helps.
=====================
Sheet1Table 1eVal Assumptions forOrganic Growth & Merger /
Acquisition StrategiesCompany NameMcCormick & Co.,
Inc.Current YearForecast Organic GrowthForecast Merger /
AcquisitionExplanation of AssumptionsIncome Statement
AssumptionsSales Growth2.9%2.9%2.9%Cost of Goods
Sold/Sales57.3%57.3%57.3%R&D/Sales1.5%1.5%1.5%SG&A/S
ales25.0%25.0%25.0%Dep&Amort/Avge PP&E and
Intang.3.1%3.1%3.1%Net Interest Expense/Avge Net
Debt3.9%3.9%3.9%Non-Operating
Income/Sales0.6%0.6%0.6%Effective Tax
Rate25.0%25.0%25.0%Minority Interest/After Tax Income-
19.3%-19.3%-19.3%Other Income/Sales0.0%0.0%0.0%Ext.
Items & Disc. Ops./Sales0.0%0.0%0.0%Pref. Dividends/Avge
Pref. Stock0.0%0.0%0.0%Balance Sheet AssumptionsWorking
Capital AssumptionsEnding Operating
Cash/Sales2.0%2.0%2.0%Ending
Receivables/Sales11.6%11.6%11.6%Ending
Inventories/COGS29.4%29.4%29.4%Ending Other Current
Assets/Sales2.9%2.9%2.9%Ending Accounts
Payable/COGS15.3%15.3%15.3%Ending Taxes
Payable/Sales0.0%0.0%0.0%Ending Other Current Liabs/Sales-
18.4%-18.4%-18.4%Other Operating Asset AssumptionsEnding
Net PP&E/Sales14.2%14.2%14.2%Ending
Investments/Sales6.3%6.3%6.3%Ending
Intangibles/Sales48.4%48.4%48.4%Ending Other
Assets/Sales1.7%1.7%1.7%Other Operating Liability
AssumptionsOther Liabilities/Sales8.5%8.5%8.5%Deferred
Taxes/Sales2.5%2.5%2.5%Financing AssumptionsCurrent
Debt/Total Assets6.1%6.1%6.1%Long-Term Debt/Total
32. Assets23.0%23.0%23.0%Minority Interest/Total
Assets0.4%0.4%0.4%Preferred Stock/Total
Assets0.0%0.0%0.0%Dividend Payout Ratio43.9%43.9%43.9%
Growth and Merger/Acquisition Analysis –
Determine two growth strategies for the selected company (one
strategy shows organic growth, the other shows merger or
acquisition).
Prepare financial projections using eVal for the two growth
strategies that you developed.
Then, prepare a written analysis and recommendation for the
growth strategy that you recommend for the Selected Company
and defend the recommendation.
Refer to the detailed instructions below for the assignment.
MAKE SURE THAT YOU SUBMIT THE EVAL VALUATION
FILES (ORGANIC & MERGER/ACQUISITION) WITH THE
ASSIGNMENT
Growth Analysis – Organic & Merger/Acquisition
Using the company selected for the assignments, determine two
growth strategies for the selected company (one strategy shows
organic growth, the other shows merger or acquisition).
Prepare financial projections using eVal for the two growth
strategies. The projections need to show the results of company
operations following implementation of each strategy.
Then, prepare a written analysis and recommendation for the
growth strategy that is recommended for the selected company
and defend the recommendation.
The assumptions used in No. 1 and No. 2 below must be
summarized in a format that is identical to the example
provided below.
33. The analysis needs to include:
1. Explanation and Analysis of Assumptions and Results of eVal
Projections for Organic Growth Strategy – Explain the
assumptions that are used in the projections. Discuss the results
of the organic growth strategy along with its strengths and
weaknesses.
2. Explanation and Analysis of Assumptions and Results of eVal
Projections for Merger or Acquisition Growth Strategy -
Explain the assumptions that are used in the projections.
Discuss the results of the merger/acquisition growth strategy
along with its strengths and weaknesses.
3. Examination and Discussion of Comparison of Results of the
Growth Strategies – Compare and discuss the two growth
strategies. This analysis should include an examination of the
comparative strengths and weaknesses of the strategies.
4. Recommendation and Justification of Most Appropriate
Growth Strategy – Recommend and justify which growth
strategy is most appropriate for the company.
Writing Instructions
The discussion portion of the analysis should be three to five
pages in length, double spaced, and should employ APA style
and format for reference citations. Supporting data (e.g.,
figures, tables, etc.) and references should be submitted limited
to four separate attachments in an appendix after the written
portion of the paper.
The paper should begin with a short introduction and then
proceed to examine the four topics outlined in the previous
section.
The subheadings used in the paper should be:
34. 1. Introduction
2. Explanation and Analysis of Assumptions and Results of eVal
Projections for Organic Growth Strategy
3. Explanation and Analysis of Assumptions and Results of eVal
Projections for Merger or Acquisition Growth Strategy
4. Examination and Discussion of Comparison of Results of the
Growth Strategies
5. Recommendation and Justification of Most Appropriate
Growth Strategy
Evaluation: 12.5% of final course grade.
Completeness of analysis: The analysis must demonstrate a
solid understanding of capital budgeting and the analysis of
corporate investments. All assumptions used in preparing the
projections for the project need to be thoroughly explained.
Organization: The paper should be well-organized and follow a
logical pattern of analysis and discussion.
Presentation: Papers should meet professional business
standards and meet APA formatting requirements.
Spelling, punctuation, and grammar: There should be few errors
in grammar and punctuation. All sentences must be complete
and well-structured.
Submission and Format:The completed paper is to be submitted
to the “Gradebook” location designated for the assignment. The
paper must be in Word format otherwise no credit is earned for
the assignment. The eVal model is to be submitted.
The paper is also to be submitted to the Online Classroom. This
will allow students to examine and discuss the various projects.
35. Table 1
eVal Assumptions for
Organic Growth & Merger / Acquisition Strategies
Company Name
McCormick & Co., Inc.
Current Year
Forecast
Organic
Growth
Forecast
Merger /
AcquisitionExplanation of Assumptions
Income Statement Assumptions
Sales Growth
2.9%2.9%2.9%
Cost of Goods Sold/Sales
57.3%57.3%57.3%
R&D/Sales
1.5%1.5%1.5%
SG&A/Sales
25.0%25.0%25.0%
Dep&Amort/Avge PP&E and Intang.
3.1%3.1%3.1%
Net Interest Expense/Avge Net Debt
3.9%3.9%3.9%
Non-Operating Income/Sales
0.6%0.6%0.6%
Effective Tax Rate
25.0%25.0%25.0%
Minority Interest/After Tax Income
-19.3%-19.3%-19.3%
Other Income/Sales
0.0%0.0%0.0%
Ext. Items & Disc. Ops./Sales
0.0%0.0%0.0%
36. Pref. Dividends/Avge Pref. Stock
0.0%0.0%0.0%
Balance Sheet Assumptions
Working Capital Assumptions
Ending Operating Cash/Sales
2.0%2.0%2.0%
Ending Receivables/Sales
11.6%11.6%11.6%
Ending Inventories/COGS
29.4%29.4%29.4%
Ending Other Current Assets/Sales
2.9%2.9%2.9%
Ending Accounts Payable/COGS
15.3%15.3%15.3%
Ending Taxes Payable/Sales
0.0%0.0%0.0%
Ending Other Current Liabs/Sales
-18.4%-18.4%-18.4%
Other Operating Asset Assumptions
Ending Net PP&E/Sales
14.2%14.2%14.2%
Ending Investments/Sales
6.3%6.3%6.3%
Ending Intangibles/Sales
48.4%48.4%48.4%
Ending Other Assets/Sales
1.7%1.7%1.7%
Other Operating Liability Assumptions
Other Liabilities/Sales
8.5%8.5%8.5%
Deferred Taxes/Sales
2.5%2.5%2.5%
Financing Assumptions
Current Debt/Total Assets
6.1%6.1%6.1%
Long-Term Debt/Total Assets
37. 23.0%23.0%23.0%
Minority Interest/Total Assets
0.4%0.4%0.4%
Preferred Stock/Total Assets
0.0%0.0%0.0%
Dividend Payout Ratio
43.9%43.9%43.9%
Essay Considerations
Introduction
1) If the student’s introduction is short, can the student
introduce the topic mater of the essay by discussing and
contextualizing the topic addressed by the student? (Optional)
2) Does the student introduce the author’s name, publication,
text, date, and venue for each text they plan to analyze?
3) Did the student briefly mention the author’s project and
argument in the introduction? When you think about the project,
think about some of the primary methods of action that an
author takes to assemble an argument: interviews, researches,
provides testimony, relies on experience, and relays
information, inform, move, persuade. You focus on certain
elements based upon your discussion.
4) Does the student include a project statement about what they
intend to do? Does the introduction effectively lead up to this
project statement in some way?
Example: Pink creates a very persuasive argument that has been
viewed by millions, but the question is, how and why is his
argument so persuasive? In this essay, I will analyze how Pink’s
text is so effective for his overall purpose and intended
audience.
5) Does the student mention the primary strategies they analyze
in their thesis to explain how the authors use certain strategies
38. based upon context?
Example: Pink incorporates precedent from authorities to prove
that intrinsic motivation encourages productivity, uses humor to
set a framework for the evidence that follows, and creates a
cause and effect framework to provide a solution for businesses,
but Jennifer Kahn uses narration to engage a general audience,
description based upon personal accounts, and authorities to
appeal to academics. Both texts use strategies that are effective
for their context, but those strategies differ based upon the
author’s purposes.Do the body paragraphs accomplish the
following goals?
· Does each paragraph include a clear topic sentence or claim
(student’s claim) that first transitions from the previous
paragraph and then controls the current paragraph.
· If the body paragraph focuses on a claim, does a body
paragraph describe the author’s claim in relation to the
argument; does it explain how the claim supports the argument,
and does the student provide a representative quote? Does the
student explain the logic in their own words?
· For strategy analysis paragraphs, does the student analyze how
a strategy or linking strategies have some kind of effect on the
audience by nature of the strategy use, suggest certain ideas, or
influence the audience in some way?
· To develop this analysis, reference contextual issues to
explain why an author might have chosen a rhetorical move and
discuss how the strategy has an effect on the audience in some
way. That effect is based upon the appeal the strategy makes,
and the best strategies make all three appeals.
· Also be keen to note how the strategy functions and therefore
influences the audience. Narration creates a personal story-
telling vibe, cause and effect demonstrates the effects of action,
comparison contrast highlights similarities and differences, and
so on.
· Does the student provide enough detail? Does the student
explain the ideas well, or is the discussion too general?
39. · Is there an evaluative tone in this essay? That evaluation can
come later in the essay, but it should be included in each
analysis paragraph.Rhetorical Analysis Body Paragraph Outline
X 3
1) Does the topic sentence highlight the strategy under analysis?
2) Does the student contextualize the strategy within the overall
argument, claim, or section? What does the strategy help the
author to achieve? Does it function as an organizational
structure for claims? Does it function as evidence? Does it
allow the author to provide an aside and engage the audience?
Does it encourage the audience to consider something contrary
to social commonplaces?
3) Does the student provide an example or paraphrase the
strategy? Does the student draw critical information from the
strategy to help illustrate how it is used?
4) Does the student explain how the strategy advances a
particular part of the argument, and is detail included in this
discussion? This is part summary, part discussion about how a
strategy functions to promote a part of the argument. In your
analysis, include evidence/facts/points that are relevant for your
discussion. If you explain how an author uses a particular
strategy or move to address and challenge a common
perspective, then you need to pull facts and details from context
to explain how society understands a particular topic, and then
discuss how the author works to alter or address that common
perspective.
5) The analysis should be based upon the type of appeal that the
strategy makes, and before each section of analysis, the student
should mention what kind of appeal they are focusing on (ethos,
pathos, logos) as if to create mini topic sentences within the
paragraph. Remember, the best strategies make all three
appeals. If the strategy encourages the audience to feel for
40. someone, that is a pathos appeal, and if that same strategy
supports a claim, then it also functions as a logos
appeal.Conclusion
1) Does the student bring all the ideas together and paraphrase
how the strategies were selected based upon context? Does the
student briefly recap each strategy and talk about how it
supports the argument/a part of the argument. Are they
discussed in the same order found in the body paragraphs?
2) Does the student leave the audience with something to think
about or a way to apply these or similar strategies in other
assignments, writing approaches, speeches, or everyday life?
What is the significance of your analysis? What can you
conclude about the writing process and conveying information
to others based upon your analysis? The student can also
mention how all acts of conversation or somewhat rhetorical, so
they can explain how approaches similar to those described and
analyzed could be used in everyday life.
3) The conclusion can be longer than one paragraph, and
concluding paragraphs read well when the author includes their
own viewpoint, responds with significance about their
discussion, or relates the argument to something their audience
can identify with.
Other considerations
· Is the essay organized effectively and/or logically?
· Does the student include transitions or metadiscourse that
connect ideas and signal what will come next?
· Are transitions between paragraphs included in the first
sentence of each paragraph? (transitions and metadiscourse
usually achieve the same goal)
· Does each paragraph include a clear topic sentence/claim?
· Does the student use signal verbs, reporting verbs, or
attributions when conveying information from an author? These
verbs can be found in your PPACES document.
41. · Does the final sentence of each paragraph conclude the idea
for each paragraph and look up to what the paragraph has said?
· Does the student describe what the author does and paraphrase
the author’s concepts?
· Does the student add their own voice to their discussion
towards the end of the essay; this should be done in the
rhetorical analysis and conclusion paragraphs. The conclusion
can be more than one paragraph long, but the final conclusion
paragraph should paraphrase the main forms of evaluation
discussed in the body paragraphs. Does the student have a point
to make that is relevant for this discussion? Do you get a sense
of their voice in this essay?
Grammar and Punctuation
1) Does the student provide a clear subject or pronoun and
active verb for every sentence?
2) Is the right subject doing the right action?
3) Is every sentence clear?
4) Does the student make proper use of commas, including
separating intro clauses from main clauses; separating a
digressions, asides, or parenthetical phrases (additional
information) from the rest of the sentence with a comma before
and comma after?
5) Does the student include proper subject/verb agreement?
6) Does the student use proper attributions, meaning does the
student describe how the author does something? Remember,
verbs for attributions can be found in your quoting guide and in
your PPACES text.
7) Does the student include enough detail so that everything is
contextualized, meaning you have no questions about how an
author does something because the student’s paraphrase is so
detailed.
8) Does the student include a full sentence before and after
semicolons (;)?
9) Does the student include a full sentence before colons (:)?
42. Essay 2
Analysis of Rhetorical Strategies
Texts that can be analyzed: David Wallace’s “This is Water,”
Ken Robinson’s “Schools Kill Creativity,” and Dan Pink’s “The
Puzzle of Motivation.”
The aboveauthors use various rhetorical strategies throughout
their texts in order to identify with and persuade their audience.
For this essay, select a text to focus on, and analyze how the
strategies make for a more persuasive argument provided the
context that the argument responds to, the topic of the
argument, the context in which the argument is published
(speech and its location), the intended audience, and/or the
author’s purpose.
Prompt: You will discuss how the author that you select for
analysis makes use of rhetorical strategies to achieve his desired
purpose. You can consider how the author uses strategies to
respond to context (publication venue, audience based upon
venue, situation or circumstances that gave rise to the need for
argument), identify with a specific audience, move his audience
past apathy, set a framework for his argument, and/or persuade
the audience in some way.
In this essay, you will provide a close reading and analysis of at
least three specific strategies. You can discuss how a one move
incorporates a number of strategies, or you can analyze one
example in terms of a specific strategy.
Criteria for evaluation:
· introduce and contextualize the text, argument, and project.
· identify at least three strategies that the author uses
throughout the text (your thesis).
· provide clear and specific examples in which the author used
43. those strategies.
· analyze the effect of those rhetorical strategies. How do they
affect the audience? In what ways do they advance or harm the
author’s ability to persuade the reader?
· evaluate the effectiveness of the use of those strategies and
address why the author might have chosen those strategies.
· conclusion should provide a discussion of the significance of
the strategies and the author’s work as a whole. What would
happen if any one of those discussed strategies were not
selected to be used in the book (how would this have made the
argument different)? Then, reflect about the general: what is the
significance of this topic to you or to anyone?
For a successful paper, make sure to:
· Have a clear thesis that signals your argument to the reader.
· Topic sentences must map out your organizational theme.
· Write the paper as if addressing an educated reader who is
unfamiliar with the text in focus.
· Edit your paper thoroughly so that sentences are easy to read
and error-free.
· Use MLA format. Include a works cited page that lists the
author and his text. No outside sources are necessary.
Length: 3.5 - 5 pages